Treasury: Relax, TARP Cost Trimmed by $200B
Estimated loss to taxpayers down to just $42B as banks rebound
By Jane Yager,  Newser Staff
Posted Dec 7, 2009 5:02 AM CST
Updated Dec 7, 2009 7:53 AM CST
With protesters in the background, Treasury Secretary Timothy Geithner testifies on Capitol Hill in Washington earlier this year.   (AP Photo/Susan Walsh, File)

(Newser) – In news that may cool public anger over bailouts, the government expects to get back some $328 billion of the $370 billion loaned to troubled companies during the financial crisis. The portion loaned to banks is even showing a slight profit. A Treasury report to Congress today will reveal a vast improvement from White House estimates a few months ago of up to $341 billion lost, the New York Times reports.

The rosier projections come from higher-than-expected returns on the loans as well as the end to the financial sector's free fall last year, cutting down on the rate of new loans needed this year. The new estimates lower this year's deficit forecast from $1.5 trillion to $1.3 trillion, and have some in Congress eying saved bailout money for economic stimulus and job creation.
 

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